Continental U.K. Ltd. v. Anagel Confidence Compania Naviera S.A. (The Common Venture) - U.S. District Ct. (S.D.N.Y.) (Tenney J.) - 27 April 1987

Whether bill of lading incorporating sub-charterparty arbitration clause compels head owners to arbitrate

The vessel Common Venture was owned by Anagel and time-chartered to Fednav Ltd. on the NYPE form dated October 1985. The charterparty provided that disputes should be submitted to arbitration in London. On 3 December 1985 Fednav sub-chartered the vessel to Stellar Chartering and Brokering Inc. for the carriage of soyabeans from Chicago to England. The sub-charter expressly incorporated the NYPE arbitration clause in the time-charter. That arbitration clause provided that any dispute between the owners and charterers should be submitted to arbitration in New York.